ES reached our 1646 target from Oct 3 (the yellow .786 retracement) yesterday — but an hour after the cash market closed.
Obviously, the House and the President remain locked in a high-stakes poker game that could turn the market on its head quite quickly. So, always use stops.
The last FOMC meeting minutes come out at 2PM EST, so look for some action around that time.
UPDATE: 11:11 AM
SPX just tagged the .786 at 1649.38. ES at 1643 — off 3 from yesterday’s lows and theoretically not a Butterfly Pattern killer. We should see a turn here, or else there’s 10 more points of downside until the SPX .886 (9 for ES.)
So far, so good.